TaxTMI 
TaxTMI 
2022 (6) TMI 1024
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....cution of civil, electrical and mechanical contract. The return of income for the assessment year 2012-13 was filed on 30.09.2012 declaring total income of Rs.48,33,060/- after claiming exemption u/s 80IA of the Income Tax Act, 1961 ('the Act'). Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax (Central) Circle, Kolhapur ('the Assessing Officer') vide order dated 31.12.2014 passed u/s 143(3) of the Act at total income of Rs.18,29,19,275/-. While doing so, the Assessing Officer had disallowed the claim for deduction u/s 80IA by holding that the appellant is a small works contractor. The Assessing Officer also brought to tax under the head "income from other sources" of miscellaneous receipts like VAT reimbursement, interest received on bank deposits, discount received from sundry creditors etc and held such items are not pertaining to the business of exemption of contract works does not qualify for deduction u/s 80IA of the Act. The Assessing Officer also made disallowance of Rs.90,00,400/- u/s 14A and disallowance of Rs.1,92,695/- u/s 37(1) of the Act. 5. Being aggrieved by the above disallowances, an appeal was preferred....
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.... any other body established or constituted under any Central or State Act; (b) it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility; (c) it has started or starts operating and maintaining the infrastructure facility on or after the 1st day of April, 1995: Provided that where an infrastructure facility is transferred on or after the 1st day of April, 1999 by an enterprise which developed such infrastructure facility (hereafter referred to in this section as the transferor enterprise) to another enterprise (hereafter in this section referred to as the transferee enterprise) for the purpose of operating and maintaining the infrastructure facility on its behalf in accordance with the agreement with the Central Government, State Government, local authority or statutory body, the provisions of this section shall apply to the transferee enterprise as if it were the enterprise to which this clause applies and the deduction from profits and gains would be ava....
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....rovided further that in the case of any undertaking which develops, develops and operates or maintains and operates an industrial park, the provisions of this clause shall have effect as if for the figures, letters and words "31st day of March, 2006", the figures, letters and words "31st day of March, 2011" had been substituted; (iv) an undertaking which,- (a) is set up in any part of India for the generation or generation and distribution of power if it begins to generate power at any time during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 2017; (b) starts transmission or distribution by laying a network of new transmission or distribution lines at any time during the period beginning on the 1st day of April, 1999 and ending on the 31st day of March, 2017: Provided that the deduction under this section to an undertaking under sub-clause (b) shall be allowed only in relation to the profits derived from laying of such network of new lines for transmission or distribution; (c) undertakes substantial renovation and modernisation of the existing network of transmission or distribution lines at any ....
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....es of interpretation would come into play only if there is any doubt with regard to the express language used. Where the words are unequivocal, there is no scope for importing any rule of interpretation as submitted by the appellant. In the circumstances of the case, the decision of the High Court was affirmed and the appeal was to be dismissed. [Para 8]." 11. Again this expression has been interpreted in the context of provisions of section 80IA by the Hon'ble Supreme Court in the case of Liberty India vs. CIT, 317 ITR 218 (SC) wherein the Hon'ble Supreme Court held as follows :- "Scheme of sections 80-IA and 80-IB Analysing Chapter VI-A, one may find that sections 80-IB and 80-IA are the Codes by themselves as they contain both substantive as well as procedural provisions. It is evident that section 80-IB provides for allowing of deduction in respect of profits and gains derived from the eligible business. The words 'derived from' are narrower in connotation as compared to the words 'attributable to'. In other words, by using the expression 'derived from', the Parliament intended to cover sources not beyond the first degree. [Para 14] ....
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....4A have no application in the case of strategic investments. We further find from the order of the Assessing Officer, it was asserted vide para 15(c) that during the year under consideration the appellant had not received any exempt income and therefore, no disallowance can be made. However, the Assessing Officer without dealing with this contention applied the provisions of section 14A of the Act. In the circumstances, we are of the considered opinion that to meet the ends of justice matter requires remission to the Assessing Officer with direction that if it is found on verification that no exempt income was earned from the investments made no resort to provisions of section 14A can be made keeping in view of the decision cited supra. Accordingly, this ground of appeal no.2 is remitted to the file of Assessing Officer for de novo consideration on merits in accordance with law after affording reasonable opportunity of being heard to the assessee. Thus, this ground of appeal no.2 stands partly allowed for statistical purposes. 14. Ground of appeal no.3 does not arise out of the order of the ld. CIT(A) as the said ground of appeal no.3 was not pressed during the course of hearing....
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....a Home Builders (supra) has held that deduction u/s.80IC is permissible in computing book profit u/s.115JB of the Act. Unfortunately, the above referred judgments of the Hon'ble Guwahati, Uttarakhand and Karnataka High Courts, which were prevailing on the date of hearing by the Mumbai Bench, were not brought to its notice. 19. At this stage it would be relevant to take note of another judgment of the Hon'ble Rajasthan High Court in Bishnu Krishna Shrestha vs. CIT (2019) 414 ITR 405 (Raj). The assessee in that case challenged the provisions of Section 115JB & 80IC of the Act on the ground that the benefit granted under Section 80IC could not have been withdrawn by introduction of section 115JB. Thus the dispute was on the non-granting of deduction u/s 80IC in the computation of tax liability u/s 115JB. Contention of the assessee that the denial of the deduction was ultra vires the Constitution of India came to be rejected. Although the SLP on this issue has been admitted by the Hon'ble Supreme Court in S.B.L. (P.) Ltd. vs. CIT (2019) 263 Taxman 477 (SC), but that does neither make the ratio of the judgment otiose nor accord such admission a status of binding precedent under....